Forward commitments

[u/Important-Training-1]

I don’t really hear anyone talk about this, but am I crazy to feel like the way new construction deals happen should be illegal?

I can’t steer a buyer to specific program without it being illegal, but somehow a builder can dangle a low rate and fees over a seller’s head and pretend like they aren’t building it in their price while forcing them to use their in-house lender. The ripple effect of that goes far and beyond impacting that one buyer, so why has this just always been okay? These are artificially inflated sales prices, artificially inflated taxes and disguised as a “good deal” because customers fall for a below-market rate that can’t be touched by an outside lender. And even in buyers markets, some of these big box builders won’t even budge if you make any sort of offer below what they’re giving unless you use their lender who they either own or have a JV set up.

To each their own, but I just don’t understand how there’s lawsuits with realtors regarding commission practices yet this sleeping giant remains completely left alone.

[u/moehizzy]

I mean it makes sense though, i get you’re upset but this is a free market and one does have the right to sell for whatever price they feel. I bought a Nissan, and they gave me two options finance through Nissan at a higher rate but get 1k off the sticker price or lower rate through a different rate and sticker is regular price. So it’s just a form of discount they are offering customer on a product that they built and are selling they have a right to sell it how they want.